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Beecher Carlson Innovations - Foward-Looking Analytics

Forward-Looking Analytics

See the Likelihood & Severity of Class Action Litigation Against Your Company - Before It Happens

Imagine the power to predict with precision the likelihood and severity of your D&O risk. What would you do differently? Which courses of action would you take - or not take - knowing how they would impact the likelihood of a shareholder class action suit?

Considering the enormous consequences of potential litigation, this predictive ability is a must-have for executives and directors today. For Beecher Carlson clients, it's a reality.

We are the first and only brokerage to provide you a forward-looking view into your risks, arming you with actionable information that can be used today to mitigate the severity and frequency of future shareholder class action litigation.

How does forward-looking analytics work?

Think of it as an early warning system. With our proprietary set of modeling applications, MARA (Multivariate Algorithm for Risk Analyses), we evaluate approximately 4,000 individual metrics - several times more than any other brokerage - to determine and assess your company's various risk drivers and their unique relationships with one another. MARA draws on raw data measuring financial and business performance, corporate governance, compensation and securities class action history.

What does MARA tell me?

Using various models to assess class action likelihood and expected loss, your company's data is analyzed and reported in two ways:
  1. Risk Scorecard: presents your company's objective risk assessment score relative to comparable organizations
  2. Drivers of Risk Assessment: presents the predictors of class action likelihood and severity.
Together, these reports offer a wealth of actionable information. Imagine being able to predict the likelihood of a securities class action suit being filed; the likelihood of a previously-filed class action being dismissed and the expected severity of financial loss relating to securities litigation. Iand also fulfill Sarbanes-Oxley risk reporting requirements.

What can I do with these results?

Forward-looking analytics provides Beecher Carlson clients with several key benefits:
  • Insurance Expense Management - Insurance is a pure expense, and must be managed carefully and rationally. This requires an objective basis for deciding how much of it to buy and at what cost. Forward-looking analytics lets you know exactly how much D&O coverage you need, based on objective risk analysis.
  • Benchmarking Knowledge - MARA compares and contrasts your risk results with those of your peers. This offers an incredible window into your business, and gives you confidence in your decisions regarding appropriate limits, retentions and premiums.
  • Negotiating Strength - MARA is a highly persuasive tool when it comes to underwriting negotiations. Knowledge of specific positive or negative risk factors means no surprises for senior management at underwriter meetings. It also gives the Beecher Carlson team a negotiating edge to secure the best terms, conditions and pricing on your behalf.
  • Risk Modeling Opportunities - How often do you get the chance to play "what if?" with alternative courses of action? MARA can be manipulated in order to model how each decision or choice will impact your D&O risk profile.
  • Enterprise Risk Management Alignment - With regulators and debt rating agencies increasing their scrutiny on risk management practices, you need all the risk data you can get. By identifying problem areas for a securities claim, you can more effectively mitigate and manage those exposures before litigation occurs.
Contact us today for more information.